Economics in the News – June 1-7
Economics impacts our lives every day. Below are some of the top storylines from this past week related to economics.
- The jobs report from Friday offered a glimmer of hope for the path of recovery from the coronavirus. Unemployment in May unexpectedly improved to 13.3 percent from 14.7 percent in April. The Labor Department announced that 2.5 million jobs were added. The industries that benefited the most were also the industries that were hit the hardest at the start of the coronavirus pandemic, including leisure, hospitality and retail work. [The New York Times]
- More than three months since the first known coronavirus case, New York City is taking steps to reopen. An estimated 400,000 people are expected to return to work with safety precautions in place. The first phase of reopening includes construction, manufacturing and retail. [The New York Times]
- Major U.S. airlines are beginning to ramp up their flight schedules after experiencing a boost in customer demand in preparation for the summer months. American Airlines plans to operate at around 40 percent of its July 2019 capacity, an increase from 30 percent in June. Similarly, United Airlines will begin flying to more than 150 of its U.S. and Canadian destinations in July. The modest increase in flights mark the beginning of an expected lengthy recovery for the airline industry. [NPR]
- Both wildfires and the coronavirus pandemic have likely pushed Australia into its first recession in 29 years. Australia’s economy shrank 0.3 percent in the first quarter of 2020. Second quarter figures are likely to confirm that shutdowns have led the country into a recession. [BBC]
- European citizens will once again be able to travel from country-to-country this summer. European Union leaders are planning a July 1 reopening of borders to the 26-country Schengen travel zone – where people can move freely without border checks. Travel restrictions will remain in place for international travelers. [The Associated Press]